Adami responded by saying that believes dividend stocks provide a false sense of security against the broader market.

"The only safety in dividend stocks is the dividend they pay," he said. "In other words, if the market goes down 5 percent and you have a 3 percent dividend yield, that's your safety right there. It's doesn't insulate them from the broader market."

In May, O'Leary and Private Advisor Group's Guy Adami went head to head over the issue.